Search: systemic risks

Sort by: Relevance Date
1–6 of 6 collapsed search results for systemic risks
Did you mean systemicrisk?

RBA Glossary definition for systemic risks

systemic risks – Events which may jeopardise financial system stability and cause harm to the real economy. For example, the Y2K problem was regarded as such a risk. They may include the risk that the failure of one participant in a payments system, or in financial markets generally, to meet their required obligations when due, will cause other participants or financial institutions to be unable to meet their obligations (including settlement obligations in a transfer system) when due. Such a failure may cause significant liquidity or credit problems.

Search Results

The Provision of Systemic Liquidity Services by the Public Sector

27 Oct 2008 RDP 2008-06
Jonathan Kearns and Philip Lowe
other than of the highest credit quality exposed the central bank to an unacceptable degree of risk. ... Such actions are, however, not without considerable risks. Not only is there the obvious risk that the assets may ultimately be worth less than the
https://www.rba.gov.au/publications/rdp/2008/2008-06/pro-systemic.html

References

27 Oct 2008 RDP 2008-06
Jonathan Kearns and Philip Lowe
Download the Paper 485. KB. Alexander L (2008), ‘Central Counterparties Could Lessen Systemic Risk’, FT.com site, 5 June. ... IMF (International Monetary Fund) (2008), Global Financial Stability Report – Containing Systemic Risks and Restoring
https://www.rba.gov.au/publications/rdp/2008/2008-06/references.html

Policy Discussion

27 Oct 2008 RDP 2008-06
Jonathan Kearns and Philip Lowe
way, rather than dumped onto markets when risk and illiquidity premia are at their highest. ... If the public sector is to provide some form of systemic liquidity insurance – and inevitably accept a higher level of risk in doing so – the trade-off
https://www.rba.gov.au/publications/rdp/2008/2008-06/policy-discussion.html

The First-best and the Real World

27 Oct 2008 RDP 2008-06
Jonathan Kearns and Philip Lowe
markets to now be traded; one example is the credit default swap (CDS) market which allows the trading of credit risk. ... In some situations it may be able to do this at little cost and with little risk to the taxpayer.
https://www.rba.gov.au/publications/rdp/2008/2008-06/first-best.html

Introduction

27 Oct 2008 RDP 2008-06
Jonathan Kearns and Philip Lowe
A particular focus is to what extent the public sector should provide ‘systemic liquidity services’ to the private sector and, if it is to provide such services, how this should be ... undermined by financial institutions taking on greater risk than
https://www.rba.gov.au/publications/rdp/2008/2008-06/introduction.html

Promoting Financial Infrastructure that Reduces Information Asymmetries

27 Oct 2008 RDP 2008-06
Jonathan Kearns and Philip Lowe
Several features of exchange-traded markets reduce or eliminate risks that exist in OTC markets, making them potentially more robust. ... As a result, concerns about counterparty risk which have contributed to reduced liquidity in many markets in the
https://www.rba.gov.au/publications/rdp/2008/2008-06/pro-financial.html